"Microsoft has agreed to withdraw its regulatory complaints against Google, reflecting our changing legal priorities. We will continue to focus on competing vigorously for business and for customers," a Microsoft spokesperson told Reuters in an email.

On the other hand, Google said it will continue to compete with Microsoft, but based on the merits of their products, and not in 'legal proceedings'.

"... Following our patent agreement, we've now agreed to withdraw regulatory complaints against one another," said Google.